Under certain conditions, your yacht can benefit from the merchant shipping status (Small Passenger Ship):
- full exemption from VAT for all services (including purchase, resale, chartering or hiring of a ship, maintenance, catering and refueling),
- tax incentives for investment,
- favorable tax rates,
- favorable depreciation arrangements (sliding-scale depreciation is allowed),
- indefinite carrying forward of losses,
- no capital gains on the sale of ships if the funds are reinvested,
- competitive ship registration fees,
- favorable seamen's tax rates,
- unlimited right of anchorage in European Union waters.
The administration of the ship must be carried on from Luxembourg by an accredited shipping company management operator.
